RC383: Tax-exempt Earned Income and Contributions for a Pooled Registered Pension Plan

If you are an Indian (as defined by the Indian Act) and you contributed to a pooled registered pension plan (PRPP) with tax-exempt income during the year, you’ll need to report your contributions on the RC383 form. This helps the Canada Revenue Agency (CRA) track your contributions and calculate your non-deductible PRPP contribution limit on your tax-exempt income for the next tax year.

Note: Your eligible PRPP contributions can include contributions you made as an employee and/or as a self-employed individual.

The contributions you make to a PRPP with tax-exempt income aren’t deductible for income tax purposes, but they can be used as repayment under the Home Buyers Plan (HBP) or the Lifelong Learning Plan (LLP).

Your tax-exempt income is income you earned from the following sources:

  • Employment income on a reserve (this includes employment-related income such as employment insurance benefits, Canada Pension Plan/Québec Pension Plan payments, registered pension plan benefits, etc.)
  • Self-employment income from a business on a reserve
  • Rental income from a reserve property
  • Farming or fishing income that is connected to a reserve
  • Research grants
  • Interest and investment income that is situated on a reserve

You can find your gross tax-exempt income from employment in box 71 of your T4 slip, and your tax-exempt self-employment income in box 88 of your T4 slip. If you didn’t receive a T4 slip, you’ll have to calculate your gross tax-exempt income (from your business, rental, farming, fishing, or investments), before any deductions, based on other slips you receive.

Follow these steps in H&R Block’s 2024 tax software:

  1. On the left navigation menu, under the Credits & deductions tab, click Tax Topics.

  2. Select the Pension contributions & expense checkbox.

  3. At the bottom of the page, click Add selected topics to my return.

  1. Under the PRPP and RPP heading, select the checkbox labelled Tax-exempt earned income and contributions for a pooled registered pension plan (RC383), then click Continue.

  2. When you arrive at the Tax-exempt earned income and contributions for a pooled registered pension plan page, enter your information into the tax software.